Zona de Azar Brazil – Brazil: “abecs” Approves Ban on the Use of Credit Cards for Bets

Brazil – October 4, 2024 – www.zonadeazar.com Last Tuesday, October 1, Abecs announced the prohibition of using credit cards as a payment method for betting sites. Initially planned for early 2025, the entity decided to implement the ban starting this year.

Although the meeting’s main agenda did not focus on this measure, Abecs issued a statement explaining, “The decision is based on the growing concerns within the credit card sector about preventing excessive debt among the population and the increase in online betting in the country, which, among other consequences, could lead to significant impacts on debt levels and consumption in retail and services sectors.”

Abecs also highlighted that the use of credit cards for payments at betting sites has been minimal. In an interview, Ricardo Vieira, vice president of the entity, noted that less than 1% of the financial transactions made to online betting platforms in the country are processed via credit cards.

The organization aims to extend the prohibition to other forms of credit-based payments, such as financed Pix transactions. Abecs took this step after expressing concern about the growing over-indebtedness of the Brazilian population.

“As we know, Pix is currently the primary method used for online betting transactions, serving as a gateway to credit lines such as overdrafts, and consequently, a key factor in debt accumulation,” concluded Vieira.

Edited by: @_fonta www.zonadeazar.com